mPharma, a Ghanaian healthtech company, implemented a significant workforce adjustment in September, resulting in the layoff of 150 employees. The decision was attributed to the prevailing macroeconomic conditions influenced by the devaluation of the Naira, according to mPharma's CEO, Gregory Rockson.
Mr. Rockson also unveiled the company's strategic plans to double down on its online pharmacy service, Mutti. This strategic shift is aimed at ensuring continued support for the more than 200,000 patients who rely on mPharma's Mutti services every month. The company aspires to expand this figure to two million by the end of the year.
mPharma currently operates in nine African countries, including Ghana, Nigeria, Kenya, Zambia, Malawi, Rwanda, Uganda, Gabon, and Ethiopia. Notably, the layoffs affected 40 employees in Nigeria.
Despite raising over $90 million in funding since its inception, mPharma is taking a more fiscally conservative approach moving forward. Rockson emphasized that the company will allocate resources solely to initiatives that generate revenue and profit, adhering to a stringent cost-benefit analysis.
Furthermore, the company is transitioning from a predominantly remote work setup to a hybrid model, requiring all employees to be present in the office at least three days a week, with an emphasis on reducing virtual team meetings in favor of in-person collaboration.
During an internal meeting held two months after the layoffs, Mr. Rockson outlined five key strategies for the company's future growth, particularly focusing on workforce management. One notable change is the introduction of a "hire slow, fire fast" policy, reflecting a zero-tolerance stance on underperformance.
While some critics have raised concerns about mPharma's work culture and the "firing fast" approach, Selikem Komla, a fellow tech entrepreneur, questioned the balance between instilling fear and fostering an environment of safety and excellence. Mr. Rockson, however, remains optimistic about the company's future, characterizing the road ahead as "long, painful but fun." These strategic shifts and workforce changes illustrate mPharma's dedication to adapting to the evolving economic landscape and the challenges within the healthtech sector while emphasizing financial prudence and performance accountability.
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